What is Spanish VAT? Spanish VAT Review

1. Registration Objects

1. To hold conferences, exhibitions, training or other profit-making activities in Spain.

2. Import goods to Spain.

3. Goods shipped to the EU at Spanish ports or airports.

4. Sell goods through the Internet.

5. Obtain VAT refund.

6. Foreign companies install technical equipment in Spain.

7. Provide telecommunication services in Spain.

2. E-commerce is applicable to the following situations

1) Use Spanish overseas warehouses (FBA warehouses, third-party overseas warehouses, self-built warehouses, etc.) to sell and ship to Spain or other EU countries (without exceeding the remote sales threshold)

2) The annual sales volume from the EU to Spain exceeds the distance selling threshold (Distance Selling).

According to relevant EU regulations, the threshold for distance sales in Spain is €35,000. If the annual sales of merchants from other EU countries to Spain exceed €35,000, they must pay Spanish value-added tax.

3. Registration Materials

1. Company documents: Chinese company - business license (three certificates in one), Hong Kong company - registration certificate, business registration certificate, incorporation form or annual declaration form, US company - registration certificate, IRS.

2. Forms/Signatures: The original ES-POA Spanish tax agent authorization document VAT IT "Espaa-PoA" needs to be signed by the person in charge and needs to be certified by the Hague (Hague apostilled). The POA tax agent declaration and the authorization document responsible for liaison with the tax bureau "PODER Anexo I Apoderamiento NEO" needs to be signed by the person in charge and needs to be certified by the Hague (Hague apostilled). The English documents in the attachment are for reference only.

3. Other information: Briefly introduce the main business and transaction process, estimated turnover in EU countries in the next 12 months, please confirm the English name of the registered company, which needs to be consistent with the company name used by the registered platform such as Amazon, eBay, etc., when you hope to get a valid VAT tax number, the above documents may need to be translated into Spanish, we can provide translation services, but it may be charged extra.

Compared with other VATs, it is more complicated for Chinese sellers to register Spanish VAT. In addition to requiring Spanish documents, merchants or individuals are also required to submit double-certified or Hague-certified information.

4. Materials required for VAT declaration

1. Sales report

2. Customs clearance documents

3. If it is a zero declaration, a zero declaration letter is required

V. Tax Rate

21% standard rate (applicable to most goods and services)

10% secondary tax rate (applicable to fruit juice, beverages, fish, meat, vegetables and fruits, books and newspapers, catering services, medicines, etc.)

4% ultra-low tax rate (applicable to resources that are the first necessity of life, such as eggs, milk, bread, etc.)

Note: Sellers in China are subject to a standard tax rate of 21%.

VI. Application Period

Spain has quarterly + annual reporting, that is, 4 quarterly reportings + 1 annual reporting, for a total of 5 reportings per year; the quarterly reporting times are fixed at April, July, October and January.

VII. FAQs about Spanish VAT registration

Q1. How many declarations do I need to make in Spain in a year?

Spain has quarterly + annual reporting, that is, 4 quarterly reportings + 1 annual reporting, for a total of 5 reportings per year; the quarterly reporting times are fixed at April, July, October and January.

Q2. Why do other countries only require translations, but Spain requires notarization and certification?

National conditions are different, and cross-border e-commerce VAT has just begun to be mandatory, so each country is not moving at the same pace.

Q3. What is notarization?

Notarization is an activity in which a notarial agency, based on an application by a natural person, legal person or other organization, certifies the authenticity and legality of civil acts, facts and documents of legal significance in accordance with legal procedures. The notarization system is an integral part of the national judicial system and a judicial means for the state to prevent disputes, maintain the rule of law and consolidate the legal order.

Q4. What are the consequences of registering for VAT but not paying taxes?

It is very important to declare your tax truthfully, promptly and accurately. If you intentionally delay, make an erroneous or false declaration, you may be subject to penalties from the UK tax authorities (HMRC), including goods seizure, reporting to eBay or Amazon resulting in account freezing, and fines.

Q5. Validity of VAT number

Each VAT number is unique. If you need to check the validity of a VAT number, you can visit the following link and select the corresponding country code and VAT number to query: ec.europa.eu/taxation_customs/vies

Q6. Can I use someone else’s VAT number to upload to Amazon, or can I bind one VAT number to multiple Amazon accounts?

No! First of all, each VAT number is unique, and sellers should apply for their own real and valid VAT number. If a VAT number is bound to multiple accounts, it will cause account association. Amazon will think that these accounts belong to the same operator or the same company, and there will be joint risks for multiple accounts. You must not do this.